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What Happens If I Walk Away From My Mortgage All Locations : Nationwide Real Estate Advice

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Showing results for What Happens If I Walk Away From My Mortgage [Clear search]
Wed Sep 27, 2017
Lanre Folayan answered:
Just because a house hasnt sold doesnt necessarily mean the price. Though Price is the main reasons why many houses dont sell,its not the only reason. It can be due to lack of PRESENTATION-Home staging and PROMOTION-Marketing ... more
0 votes 39 answers Share Flag
Thu Feb 14, 2013
Britt Grotheet answered:
Hi again-Just wanted to give a bit more background in case it helps someone answer the question. The owner abandoned the home about a yr ago. The home set to go to auction 1x before on July 5th 2012. The seller filed
a strategic chapter 13 bankruptcy and the home was not auctioned but placed as a short sale for $379,000. The seller owes $550,000. 2 leins both with Wells Fargo. Based on what we know about the sellers lifestyle (small business owner, cars, boat, vacations, renting a waterfront home) there is some question as to the sellers amount of
Hardship. We are specutating that his resistance to communicating with the bank could be due to this.
Now can any of you look into your crystal ball for us please??? We want this house!!!
Thanks britt
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0 votes 22 answers Share Flag
Sat Feb 9, 2013
Sabran answered:
I currently have a condo in Jefferson Park that I bought in 2008. I originally got the loan through BoA using their "No Fee Mortgage Plus" program. I didn't find out until very recently that the loan had LPMI - this was never disclosed to me verbally nor was it part of any of my loan documentation. The value of my condo has dropped sharply since I bought it, too. I'm probably about 70k underwater. This, combined with the LPMI on my loan, made it very difficult to find anyone willing to refinance. Eventually, BoA was willing to do the refinance in October 2012, but I had to agree to an FHA loan with a 4.25% rate - higher than what I was hoping for, though it still saved me about $300 a month versus my old mortgage.

Now, I'm looking to move. Ideally, I'd like to move into a single family home in the North or Northwest suburbs. I've crunched the numbers, and I think I can afford a home up to about $600k. My credit rating is excellent, I've had a stable job for almost 10 years, and I have enough cash at hand for around a 10% downpayment with about a year of PITI. I think selling my current condo is pretty much out of the question, though. I'm fairly certain that I'll need to rent my current condo. So, with all of this in mind, I had a number of questions:

- Are there lenders out there who would refinance an existing 4.25% FHA LPMI loan down to 3.25-3.5%? Or does the LPMI really preclude this from being a realistic option?
- In order to get the rental income for my current condo to count towards my monthly income, what do I need to do? I've been trying to find some information about this on the internet, and I'm reading a lot of conflicting information. Some say I need a signed lease with at least 1 year's worth of documented rental income. Others say I just need a signed lease with a security deposit. Most, however, agree that only a portion of your rental income gets counted. Usually 75%. What's the real story here?
- Assuming that I do qualify for a $600k home, that puts me into "jumbo loan" territory. I've read that you'll typically get much better rates if you split that into two different loans with each loan below 417k confirming loan limit. What are the typical "hidden" costs associated with this sort of loan arrangement over a jumbo loan? And is it possible to get these loans without a PMI if I have less than 20% down? I've heard of things like SFMI, SPMI, etc... but I don't really know how to qualify for them.

Thanks in advance to any who can help answer any of these questions!
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0 votes 7 answers Share Flag
Sun Jul 13, 2014
You need to sign off on the contingency after 17 days usually from what your contract states. Getting approval does not automatically remove your contingency. Gabriella Godde 661-713-3460
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0 votes 15 answers Share Flag
Sat Feb 9, 2013
Suzanne MacDowell answered:
This is a legal question. I would strongly suggest you consult with an Estates attorney.
0 votes 8 answers Share Flag
Mon Feb 4, 2013
Annette Levinson answered:
In NY your lawyer is contacted. Usually it is less then a week since your lawyer needs to coordinate the time with the bank's lawyer and the sellers' lawyer.
0 votes 8 answers Share Flag
Thu Jan 31, 2013
Ron Thomas answered:
The homes are probably Okay; its the terms that can be prohibitive!

You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!

Good luck and May God bless
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0 votes 6 answers Share Flag
Mon Jul 22, 2013
Moraghan DeRosia answered:
Great question! There are many programs out there for first time home buyers. I would make sure to get preapproved with a lender who will take the time to work with you and talk about the different programs. Some lenders shy away from the programs out there because they are a lot more paperwork. If you want a recommedation, please feel free to contact me directly! Good luck in your search. ... more
0 votes 13 answers Share Flag
Wed May 28, 2014
Christopher Poreda answered:
Mon Apr 1, 2013
Laurie Christofano answered:
I would ask for referrals from other clients who've used her as a dual agent. That way at least you can verify that she can walk the fine line and give all clients equal and fair representation. Some agents prefer to stay away from this mode of representation, but as long as you trust her and can verify her experience, I wouldn't rule it out. ... more
0 votes 13 answers Share Flag
Fri Sep 5, 2014
I would say honesty is the best policy. Tell the listing agent your intention. He/she is paid by the seller at closing.
0 votes 31 answers Share Flag
Wed Feb 6, 2013
David Hanna answered:
The starting point for finds the answer will be in the contract, especially if it is one of the local Realtor board documents commonly used.
The end point is to consult with an attorney. There is much room in between, and far more information is needed to begin to comment. The longer the time frame since the acceptance by all parties, the less likely exiting will be without cost and litigation. ... more
0 votes 10 answers Share Flag
Tue May 7, 2013
Craig Chastain answered:
These would all be questions that should be directed towards your Realtor (listing agent). They should be able to better answer these questions than us. Every process and house is different.

Best of luck!
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0 votes 5 answers Share Flag
Thu Aug 7, 2014
Hillary Moffitt answered:
You absolutely need to find a good realtor before you become serious about home searching. SInce interest rates are low there are a lot of buyers out there wanting to buy! Also inventory of homes for sale has been at very low levels so you need to be ready to buy/put in offers so that if a house comes on the market you are ready to make an offer. I personally love my jobs as a realtor and the best reward for me in it is to find the homes for y clients. There is nothing like the feeling of being able to hand them the keys to their new home. My clients come first and foremost. I would love to meet with you or talk to you further to tell you more about myself and how I work with clients and the steps you need to take to get an offer accepted in this challenging market place. Also just to note prices have steadily increase over the past few months, so if that continues, delaying your search will cost you more money as home prices increase. Trulia is a great source to look at homes, however in this market where homes are moving so quickly you really need to work with a realtor who has access to the most up to date status of the home and whether its still an active listing or already in pending. Trulia will show you homes that may not necessarily still be on the market as it changes so rapidly.

"Your Satisfaction is my Success" is my motto!
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0 votes 22 answers Share Flag
Tue Jun 4, 2013
Bill Eckler answered:
This is basic...."one should never solve a problem by creating another." I'm unclear how not paying the taxes would resolve your issue other than getting even with the "squatters."You were probably on track by going the eviction route with the other party and may want to consider likewise with this character.

This is a clear reminder that the death of a family member can both bring out the best in people and also bring out the worse.

Good luck,

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0 votes 9 answers Share Flag
Sat Jun 15, 2013
Suzanne MacDowell answered:
Short sales can take a very long time for the bank to approve. The seller also has to cooperate and sometimes they drag their feet. It is very frustrating and requires great patience. Are you using a realtor? If so, have them call the listing agent and see if they can find out what the hold up is and if there is anything that can be done on your side to help. Banks are very unflexible and stringent. They want what they want and there is no reasoning with them if, for example, you cannot find documentation and so on. Plus they have different departments in charge of each step, they will not even begin to look at step B until step A is complete. And, when they do get back to you, it may be with a counter offer and not an approval, you just never know.

I doubt you will have to wait much longer, I also doubt there is anything you can do to speed up the process other than follow up, follow up, follow up. I wish I could tell you something different.
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0 votes 8 answers Share Flag
Mon Jan 28, 2013
Sean Hess answered:
Did an article on that very question in November at:
0 votes 12 answers Share Flag
Wed Dec 26, 2012
Tim Moore answered:
It is an AWFUL way to attempt to buy, because it so rarely works out. You will still need to get a loan to buy at some point and no loan means you will lose more money that you gave to the owner in this rotten deal. Avoid it !! Just rent now and buy when you can. These rent to own deals are hard to find and that alone should tell you they are trouble - big trouble. Just rent until you can really buy. ... more
0 votes 3 answers Share Flag
Tue Aug 1, 2017
Guy Gimenez answered:
First, no one here has reviewed your contract so any responses would be nothing more than speculation. Has the seller breached the contract prior to now? Are you past all contingency periods? Do you have other contractually allowed termination avenues?

Too many unanswered questions so your best bet is to seek the advice of counsel prior to making a decision to intentionally breach the contract.
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0 votes 10 answers Share Flag
Sat Dec 15, 2012
Mitchell Pearce answered:

In this lending climate, it is never good to remove the loan contingency till the deal closes. Don't take a lock for less than the time necessary to close the deal. You cannot predict when things will settle down in Europe, if a miracle happens in Congress and they get their fiscal act together (Yes that is a long shot, but if it happens rates stay low, and if it does not rates will go up dramatically at some point. You don't want to be unlocked at that point.)

When rates move against you, they move a quarter pint in a day. I've seen them move half a percentage in less than three days. Do you really want to be playing in that game?

Mitchell Pearce
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0 votes 13 answers Share Flag
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